Canada Pension Plan Enhancement Consultation with Self-employed Individuals - Part One

Executive summary


As of January 1, 2019, Canadians contribute more to the Canada Pension Plan (CPP). This change, known as the CPP enhancement, is designed to help increase retirement income for working Canadians. Over the next seven years, CPP contributions will gradually increase. Once mature, the CPP enhancement will increase the maximum CPP retirement pension by about 50%.

Since self-employed individuals contribute to the CPP at a higher rate than employers and employees, they may need additional information to help them adjust to the enhancement. The Canada Revenue Agency (CRA) held an online public consultation from May 22 to July 17, 2019 with self-employed individuals. In total, the CRA received feedback from 244 participants. The aim of this consultation was to determine the level of awareness regarding the CPP enhancement, identify any gaps in the understanding of the CPP enhancement, and identify the communications needs and preferences amongst self-employed individuals.

What we heard

The insights gathered from this consultation highlight that awareness of the CPP enhancement is relatively low and that more education is needed. Nearly three-quarters of participants were unaware of the changes to the CPP. In addition, when asked how they wish to receive information about the CPP enhancement, self-employed individuals indicate a preference for one-page tip sheets, general web content, booklets/guides (PDF) and e-newsletters. Results also show that sharing information with self-employed individuals by email and on the CRA web pages are preferred over the use of other channels such as social media platforms.

What do participants want to know? More about how much they will receive when they retire, how the CPP enhancement works, and how much they will have to contribute.

Next steps

To help self-employed individuals get the information they need to meet their tax obligations, the CRA will collaborate with relevant federal departments to develop useful, simple text-based content that is easy to understand. The findings from this consultation will inform the CRA’s future communications and education around the CPP enhancement.

For more information about the CPP

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